Notice2024-30905
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update Its Fee Schedule Regarding Uncontrolled External Distributors
Primary source
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Published
December 27, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 248 (Friday, December 27, 2024)</title>
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[Federal Register Volume 89, Number 248 (Friday, December 27, 2024)]
[Notices]
[Pages 105665-105669]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30905]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101990; File No. SR-CboeBZX-2024-125]
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Update
Its Fee Schedule Regarding Uncontrolled External Distributors
December 19, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 16, 2024, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') proposes to
update its Fee Schedule. The text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change is also available on the
Exchange's website (<a href="http://markets.cboe.com/us/equities/regulation/rule_filings/BZX/">http://markets.cboe.com/us/equities/regulation/rule_filings/BZX/</a>), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Market Data section of its Fee
Schedule to adopt a new fee waiver for Uncontrolled External
Distributors.\3\ Particularly, the Exchange proposes to: (i) adopt a
waiver of External Distribution fees for Uncontrolled External
Distributors of the Summary Depth Feed and Top Feed, and (ii) adopt fee
waiver of External Distribution fees and Data Consolidation fees for
Uncontrolled External Distributors of the Cboe One Summary Feed and
Cboe One Premium Feed.\4\
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\3\ The Exchange initially adopted this fee waiver on December
2, 2024 (SR-CboeBZX-2024-123). On December 16, 2024, the Exchange
withdrew that filing and submitted this filing.
\4\ For clarity, the Exchange also proposes to modify the
applicable sections of its Fee Schedule for these data feeds to use
numbered footnotes in lieu of asterisks.
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BZX Top and Summary Depth Data
By way of background, the Exchange offers the BZX Top Data Feed,
which is a data feed that offers top-of-book quotations and last sale
information based on orders entered into the Exchange's System. The BZX
Top Data Feed benefits investors by facilitating their prompt access to
real-time top-of-book information contained in BZX Top Data. The
Exchange's affiliated equities exchanges (i.e., Cboe EDGA, Inc.
(``EDGA''), Cboe BYX Exchange, Inc. (``BYX''), and Cboe EDGX Exchange,
Inc. (``EDGX'') (collectively, ``Affiliates'' and together with the
Exchange, ``Cboe Equities Exchanges'') also offer similar top-of-book
data feeds. Particularly, each of the Exchange's Affiliates offer top-
of-book quotation and last sale information based on their own
quotation and trading activity that is substantially similar to the
information provided by the Exchange through the BZX Top Data Feed.
In addition to BZX Top Data Feed, the Exchange offers BZX Summary
Depth Data Feed, which is a data feed that offers aggregated two-sided
quotations for all displayed orders entered into the System for up to
five (5) price levels. The BZX Summary Depth Data Feed also contains
the individual last sale information, Market Status, Trading Status,
and Trade Break messages.\5\ The BZX Summary Depth Data Feed benefits
investors by facilitating their prompt access to real-time market depth
information contained in BZX Summary
[[Page 105666]]
Depth Data. The Exchange's Affiliates also offer similar depth-of-book
data feeds. Particularly, each of the Exchange's Affiliates offer
depth-of-book quotations up to five (5) price levels based on their own
quotation and trading activity that is substantially similar to the
information provided by the Exchange through the BZX Summary Depth.
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\5\ See Exchange Rule 11.22(m)
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The Exchange proposes to make the following fee changes relating to
both BZX Top and BZX Summary Depth.
BZX Top Data Feed and BZX Summary Depth Data Feed New Uncontrolled
External Distributor External Distribution Fee Waiver
Currently, the Exchange assesses all External Distributors of BZX
Top Data Feed an External Distribution fee of $2,500 per month and
External Distributors of BZX Summary Depth Data Feed an External
Distribution fee of $5,000 per month.\6\ The Exchange proposes to adopt
a fee waiver which will provide that new Uncontrolled External
Distributors of the BZX Top and/or Summary Depth feeds will not be
charged the External Distributor fees until such time they enlist one
or more Users \7\ to receive the BZX Top Feed or Summary Depth Feed
(the ``New Uncontrolled External Distributor BZX Top and Depth Fee
Waiver'').\8\ ``Uncontrolled External Distributors'' distribute data
externally to a User that is not an affiliate of the Uncontrolled
Distributor and is unable to control the entitlements of and display of
information to such User (i.e., a data feed subscriber).\9\ To be
eligible for the New Uncontrolled External Distributor BZX Top and
Depth Fee Waiver, a new Uncontrolled External Distributor must not have
received the data feed(s) for which it seeks a waiver (BZX Top and/or
Depth) within the last 18 months.\10\ As discussed further below, the
Exchange seeks to adopt the proposed New Uncontrolled External
Distributor BZX Top and Depth Fee Waiver to incentivize vendors to
adopt the BZX Top and Summary Depth feeds proactively without having to
wait for customer demand to start development and integration of data
feeds. The Exchange notes that both the Exchange and its Affiliates
currently offer similar credits to External Distributors (which both
Uncontrolled and Controlled External Distributors are eligible for) for
the purposes of allowing them time to enlist new users to receive
certain data feeds. For example, the Exchange and its Affiliates
currently offer a one (1) month New External Distributor Credit
applicable to External Distributors of top-of-book data feeds.\11\ They
also offer a three (3) month new External Credit applicable to External
Distributors of summary depth-of-book feeds.\12\
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\6\ External Distribution Fees for both BZX Top and Summary
Depth are subject to the New External Distributor Credit and
eligible for a free trial. See BZX Equities Exchange Fees Schedule,
Market Data Fees.
\7\ The Exchange defines a ``User'' of an Exchange Market Data
Product as a natural person, a proprietorship, corporation,
partnership or entity, or device (computer or other automated
service), that is entitled to receive Exchange data. See BZX
Equities Exchange Fees Schedule, Market Data Fees.
\8\ The proposed waivers of the External Distribution fees for
each of BZX Top and BZX Summary Depth will be applied separately.
For example, when an Uncontrolled External Distributor that is
receiving a fee waiver for both BZX Top and BZX Summary Depth
enlists a first User for BZX Top, the Uncontrolled External
Distributor will no longer eligible to receive the waiver for BZX
Top, but will still receive the waiver for BZX Summary Depth until
and unless it enlists a new subscriber for BZX Summary Depth.
Additionally Uncontrolled External Distributors will receive at
least the one month New External Distributor Credit for BZX Top and
the New External Distributor credit of at least three months for BZX
Summary Depth. For example, if an Uncontrolled Distributor enlists a
new subscriber of BZX Summary Depth during its second month taking
BZX Summary Depth, the Uncontrolled External Distributor will still
receive a credit for the remainder of the second month, as well as
the third month under the existing New External Distributor Credit
program.
\9\ See Cboe Global Markets North American Data Policies. The
Exchange proposes to codify the definition of an ``Uncontrolled
External Distributor'' in the Definitions section of the Market Data
Fees schedule in the Exchange's Fees Schedule for transparency and
clarity.
\10\ The Exchange notes that its affiliate exchange, EDGA, has a
similar 18 moth requirement for participants to be considered
eligible for the New Member Program. See EDGA Equities Exchange Fees
Schedule, New Member Program.
\11\ With the exception that EDGA does not offer this credit as
the monthly cost is $0. See e.g., EDGA Equities Exchange Fees
Schedule, Market Data Fees and EDGX Equities Exchange Fees Schedule,
Market Data Fees.
\12\ See e.g., EDGX Equities Exchange Fees Schedule, Market Data
Fees.
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Cboe One Summary and Premium
By way of background, Cboe One Premium is a data feed that
disseminates, on a real-time basis, the aggregate best bid and offer
(``BBO'') of all displayed orders for securities traded on BZX and its
Affiliates and contains optional functionality which enables recipients
to receive aggregated two-sided quotations from BZX and its Affiliates
for up to five (5) price levels.\13\ The Cboe One Premium Data Feed is
created using the data from the Exchange and its Affiliates' Summary
Depth data feeds. In contract, Cboe One Summary is a data feed that
disseminates, on a real-time basis, the aggregate BBO of all displayed
orders for securities traded on BZX and its affiliated equities
exchanges and also contains individual last sale information for the
BZX and its affiliated equities exchanges.\14\ The Cboe One Summary
Data Feed is created using the data from the Exchange and its
Affiliates' Top data feeds. Currently, the Exchange offers the New
External Distributor Credit which provide that new External
Distributors of the Cboe One Premium Feed and Cboe One Summary Feed
will not be charged an External Distributor Fee for their first three
(3) months and one (1) month, respectively, in order to allow them to
enlist new Users to receive the respective feed.\15\ The Exchange
proposes to make the following fee change relating to both the Cboe One
Summary Data Feed and the Cboe One Premium Data Feed.
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\13\ The Cboe Aggregated Market (``Cboe One'') Feed is a data
feed that contains the aggregate best bid and offer of all displayed
orders for securities traded on the Exchange and its affiliated
exchanges (i.e., EDGX, EDGA, and BZX). See Exchange Rule 11.22(j).
The Cboe One Feed contains optional functionality which enables
recipients to receive aggregated two-sided quotations from the Cboe
Equities Exchanges for up to five (5) price levels (``Cboe One
Premium Feed''). The Cboe One Premium external distribution fee is
equal to the aggregate EDGX Summary Depth, BYX Summary Depth, EDGA
Summary Depth, and BZX Summary Depth external distribution fees.
\14\ The Exchange notes that when it first adopted the New
External Distributor Credit for Cboe One Summary, it similarly
applied for a new External Distributor's first three (3) months. See
Securities Exchange Act Release No. 74285 (February 18, 2015), 80 FR
9828 (February 24, 2015) (SR-BATS-2015-11).
\15\ See BZX Fee Schedule.
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Cboe One Summary and Premium New Uncontrolled External Distributor
External Distribution and Data Consolidation Fee Waivers
Currently, the Exchange assesses all External Distributors of Cboe
One Summary an External Distribution fee of $5,000 per month and
External Distributors of Cboe One Premium an External Distribution fee
of $12,500 per month.\16\ The Exchange proposes to adopt fee waivers
which will provide that new Uncontrolled External Distributors of the
Cboe One Summary and Cboe One Premium feeds will not be charged either
the (i) External Distribution fees nor (ii) Data Consolidation fee
until such time they enlist one or more Users to receive the Cboe One
Summary or Cboe One Premium Feeds (the ``New Uncontrolled External
Distributor Cboe One Summary and Cboe One Premium Fee Waiver'').\17\
[[Page 105667]]
To be eligible for either fee waiver for the applicable feed(s) (Cboe
One Summary and/or Cboe One Premium), the new Uncontrolled Data
Distributor must not have received the applicable data feed(s) for
which it seeks a waiver in the last 18 months.\18\ For clarity, similar
to the New Uncontrolled External Distributor BZX Top and Depth Fee
Waiver, while the Uncontrolled External Distributor receives the New
Uncontrolled External Distributor Cboe One Summary and Cboe One Premium
Fee Waiver, the Uncontrolled External Distributor will not have any
customers receiving this data. As described herein, once the New
Uncontrolled External Distributor enlists its first User, it is no
longer eligible to receive the New Uncontrolled External Distributor
Cboe One Summary and Cboe One Premium Fee Waiver.
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\16\ External Distribution Fees for both Cboe One Summary and
Cboe One Premium are subject to the New External Distribution Credit
and eligible for a free trial. See BZX Equities Exchange Fees
Schedule.
\17\ The proposed waivers of the External Distribution fees for
each of Cboe One Summary and Cboe One Premium will be applied
separately. For example, when an Uncontrolled External Distributor
that is receiving a fee waiver for both Cboe One Summary and Cboe
One Premium enlists a first User for Cboe One Summary, the
Uncontrolled External Distributor will no longer eligible to receive
the waiver for Cboe One Summary, but will still receive the waiver
for Cboe One Premium until and unless it enlists a new subscriber
for Cboe One Premium. Additionally Uncontrolled External
Distributors will receive at least the one month New External
Distributor Credit for Cboe One Summary and the New External
Distributor credit of at least three months for Cboe One Premium.
For example, if an Uncontrolled Distributor enlists a new subscriber
of Cboe One Premium during its second month taking Cboe One Premium,
the Uncontrolled External Distributor will still receive a credit
for the remainder of the second month, as well as the third month
under the existing New External Distributor Credit program.
\18\ See supra note 8.
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To start, the Exchange's proposal to waive the External Distributor
fee for New Uncontrolled External Distributors until a User is
enlisted, will prevent the combined cost of subscribing to BYX, EDGA,
EDGX, and BZX Summary Depth feeds for new Uncontrolled External
Distributors to be greater than those currently charged to subscribe to
the Cboe One Premium feed. Similarly, the proposed External Distributor
fee waiver for Cboe One Summary will prevent the combined cost of
subscribing to BYX, EDGA, EDGX, and BZX Top feeds for new Uncontrolled
External Distributors to be greater than those currently charged to
subscribe to the Cboe One Summary feed.
Next, the Exchange proposes to waive the Data Consolidation fee for
New Uncontrolled External Distributors its first User enlists for the
Cboe One feeds. The Exchange currently charges Distributors of the Cboe
One Feeds a separate Data Consolidation Fee of $1,000 per month, which
reflects the value of the aggregation and consolidation function the
Exchange performs in creating the Cboe One Options Feed.\19\ As stated
above, the Exchange creates the Cboe One feeds from data derived from
the Cboe Equities Exchanges. Distributors (including vendors) could
similarly create a competing product to the Cboe One feeds based on
these individual data feeds offered by the Exchanges and could charge
its clients a fee that it believes reflects the value of the
aggregation and consolidation function.
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\19\ See Cboe BZX Fee Schedule. If a vendor distributes the Cboe
One Options Feed to another firm, who then re-distributes the Cboe
One Options Feed, both entities would be subject to the Data
Consolidation Fee. A vendor will only be assessed a single Data
Consolidated Fee, even if it distributes Cboe One Options Feed to
more than one entity.
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The Exchange proposes to adopt this fee waiver to similarly prevent
new Uncontrolled External Distributors of the Cboe One Summary or Cboe
One Premium feeds from being charged a Data Consolidation Fee until
such time they enlist one or more Users to receive the Cboe One Premium
or Cboe One Summary feeds.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\20\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \21\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. The Exchange also believes this proposal is
consistent with Section 6(b)(8) of the Act, which requires that the
rules of an exchange not impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.\22\
In addition, the Exchange believes that the proposed rule change is
consistent with Section 11(A) of the Act as it supports (i) fair
competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets, and
(ii) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities.\23\
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\20\ 15 U.S.C. 78f(b).
\21\ 15 U.S.C. 78f(b)(5).
\22\ 15 U.S.C. 78f(b)(8).
\23\ 15 U.S.C. 78k-1.
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First, the Exchange notes that BZX Top Feed, BZX Summary Depth
Feed, Cboe One Summary Data Feed and Cboe One Premium Data Feed
(together, the ``Applicable Feeds'') are distributed and purchased on a
voluntary basis, in that neither the Exchange nor market data
distributors are required by any rule or regulation to make these data
products available. Distributors (including vendors) and Users can
therefore discontinue use at any time and for any reason, including due
to an assessment of the reasonableness of fees charged. Further, the
Exchange is not required to make any proprietary data products
available or to offer any specific pricing alternatives to any
customers.
The Exchange proposes that the proposed waivers applicable to BZX
Top & Depth and Cboe One Feeds (together, the ``New Uncontrolled
External Distributor Fee Waivers'') only apply to Uncontrolled External
Distributors for two reasons. The first is to account for Uncontrolled
External Distributors needing to develop to the data feed itself. By
way of background, the other category of External Data Distributors are
Controlled Distributors.\24\ Controlled Distributors both (i) provides
data to a User and (ii) controls the entitlements of and display of
information to such User.\25\ Therefore, the key distinction between
Uncontrolled Distributors and Controlled Distributors is that
Uncontrolled Distributors distribute a data feed and Controlled
Distributors enable visible data for one of its Users. The proposed fee
waivers will allow Uncontrolled External Distributors the necessary
time to develop to the data feed itself and program all of the
different messages, fields and flags and not subject them to any fees
until such time they are able to recoup their costs from end-users.
Additionally, once the data feed is setup on the Uncontrolled External
Distributors end, there are
[[Page 105668]]
typically long lead times for Uncontrolled External Distributors to
onboard new downstream data feed customers. The lead times, or sales
cycles, are vastly different for Uncontrolled versus Controlled
Distributors, as Uncontrolled Distributors are attempting to locate
Users who need to receive a real-time market data feed for downstream
ingestion on their side (whether this be for trading, analysis, or
application development). In contrast, Controlled Distributors are only
entitling individual Users to view the data on a pre-existing Display
application. For an Uncontrolled Distributor to both set up and find
its first User as a data feed subscriber, it can easily take several
months. As there is more uncertainty with the viability of both
developing a data feed and finding Users for this data feed after the
Uncontrolled External Distributor develops it, the Exchange believes it
is therefore reasonable, equitable and not unfairly discriminatory for
this discount to only apply to Uncontrolled External Distributors to
encourage development of their data offerings.
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\24\ Controlled Distributors may be Internal or External
Distributors. See supra note 7. ``Controlled External Distributors''
provide data to an unaffiliated User (i.e., externally distribute)
and unlike Uncontrolled External Distributors, they control the
entitlement of and display of info to such User.
\25\ Id.
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The Exchange has also taken into consideration its affiliated
relationship with its Affiliates in its design of the proposed waivers
\26\ to ensure that vendors would be able to offer similar products to
its Cboe One Summary and Cboe One Premium Feeds on the same terms as
the Exchange from a cost perspective. While the Cboe Equities Exchanges
are the exclusive distributors of the individual data feeds from which
certain data elements may be taken to create the Cboe One feeds, they
are not the exclusive distributors of the aggregated and consolidated
information that comprises the Cboe One feeds. Any entity that
receives, or elects to receive, the individual data feeds would be able
to, if it so chooses, to create a data feed with the same information
included in either of the Cboe One feeds and sell and distribute it to
its clients so that it could be received by those clients as quickly as
the Cboe One feeds would be received by those same clients. Such
entities would also not be assessed any greater fees by the Exchange
than the Exchange assess for the Cboe One feeds (i.e., those who elect
to distribute and consolidate the individual data fees and those who
elect to distribute the Cboe One feeds will all be eligible for the
proposed fee waivers offered by the Exchange).
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\26\ The Exchange notes that its Affiliates will also be
proposing to adopt these same credits with the exception of the EDGA
Top Data Feed as the External Distribution monthly cost is $0 for
that particular data feed. See EDGA Equities Fees Schedule, Market
Data Fees.
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New External Distributor Credit
The Exchange believes it is reasonable to not charge Uncontrolled
External Distributors of an Applicable Feed(s) until such time they
enlist one or more Users to receive the applicable feed as such
Distributors will not be subject to the External Distribution Fees for
the applicable product(s) during this period.\27\ Additionally, the
Exchange and its Affiliates offer a similar credit now that all
External Distributors, including Controlled External Distributors, may
receive.\28\ The proposed credit is intended to incentivize new
Uncontrolled External Distributors to enlist Users to subscribe to the
Applicable Feeds in an effort to broaden the products' distribution to
data feed Users. While this incentive is not available to Internal
Distributors of these products, the Exchange believes it is appropriate
as Internal Distributors have no Users outside of their own firm.
Furthermore, External Distributors are subject to higher risks of
launch as the data is provided outside their own firm. In contrast,
Internal Distributors who only subscribe to a specific Exchange offered
market data product when there is a need as they themselves are using
the information, External Distributors do not use the data themselves,
but as noted, take the risk of onboarding the data to sell as a service
to downstream customers.\29\ For these reasons, the Exchange believes
it is appropriate, equitable and not unfairly discriminatory to provide
additional incentives to External Distributors so they have sufficient
time to test the data within their own systems prior to going live
externally. As discussed above, the Exchange also believes it is
appropriate to limit this specific credit to Uncontrolled External
Distributors given the longer development times associated with both
the integration of the data feed and onboarding Users.
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\27\ As noted above, Distributors may still receive this credit
for any of the applicable feeds of which there are no Users (i.e.,
the Uncontrolled Distributor may still receive this credit for Cboe
One Summary if there is a User subscribed for BZX Top).
\28\ See e.g., EDGX Equities Exchange Fees Schedule, Market Data
Fees.
\29\ The Exchange notes that in addition to the existing New
External Distributor Credit offered by it and its affiliates, other
exchanges have offered similar waivers for external redistribution.
See BZX Equities Exchange Fees Schedule, Market Data Fees and
Securities Exchange Act Release No. 90407 (November 12, 2020), 85 FR
73570 (November 18, 2020 (SR-NYSE-2020-91).
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Data Consolidation Fee
The Exchange believes it is reasonable to not charge Uncontrolled
External Distributors of Cboe One Summary and Cboe One Premium a Data
Consolidation Fee until such time they enlist one or more Users to
receive the applicable feed as such Distributors will not be subject to
the Data Consolidation Fee for the applicable product(s) during this
period. For the avoidance of doubt, once an Uncontrolled External
Distributor enlists its first User, this waiver will no longer be
applicable--at no time will an Uncontrolled External Distributor
receive this waiver while it has customers receiving the applicable
data feed. As previously discussed, the Exchange believes the proposed
Data Consolidation Fee Waiver for Uncontrolled External Distributors is
not designed to permit unfair discrimination against Controlled
External Distributors because of the longer lead times in the
development Uncontrolled External Distributors experience. Further, as
previously discussed, the Exchange believes only applying this to a
subset of External Distributors and not any Internal Distributors is
equitable and not unfairly discriminatory given the additional risk
External Distributors assume when building out a product for which they
have no existing use cases. Therefore, the Exchange believes the
proposed application of the Data Consolidation Fee Waiver is reasonable
and would not permit unfair discrimination.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The proposed rule changes are grounded in the Exchange's efforts to
compete more effectively and to assist in mitigating business costs
(i.e., the costs associated with the development of data feeds and
seeking Users to onboard for such data feeds) for Uncontrolled External
Distributors. Further, as previously discussed, the Exchange believes
the proposed Data Consolidation Fee Waiver for Uncontrolled External
Distributors is not designed to permit unfair discrimination against
Controlled External Distributors because of the longer lead times in
the development Uncontrolled External Distributors experience. As a
result, the Exchange believes this proposed rule change permits fair
competition among national securities exchanges. Further, the Exchange
believes that these changes will not cause any unnecessary or
inappropriate burden on intermarket
[[Page 105669]]
competition, as the proposed incentive program applies uniformly to all
Uncontrolled External Distributors.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \30\ and paragraph (f) of Rule 19b-4 \31\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\30\ 15 U.S.C. 78s(b)(3)(A).
\31\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#a4d6d1c8c189c7cbc9c9c1cad0d7e4d7c1c78ac3cbd2"><span class="__cf_email__" data-cfemail="2a585f464f07494547474f445e596a594f49044d455c">[email protected]</span></a>. Please include
file number SR-CboeBZX-2024-125 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-CboeBZX-2024-125. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-CboeBZX-2024-125 and should
be submitted on or before January 17, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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\32\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-30905 Filed 12-26-24; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on December 27, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.